What is the difference between CIF n CIP ? Explain

Question

Accepted Answer

CIF and CIP are both international trade terms used in contracts. CIF includes insurance and freight costs, while CIP only includes insurance.

CIF stands for Cost, Insurance, and Freight, while CIP stands for Carriage and Insurance Paid To.
CIF includes the cost of goods, insurance, and freight charges, meaning the seller is responsible for delivering the goods to the port of destination and covering the insurance and freight costs.
CIP, on the other hand, includes the cost of goods and insurance, but not the freight charges. The seller is responsible for delivering the goods to the carrier or another agreed-upon location.
In CIF, the risk of loss or damage to the goods transfers from the seller to the buyer once the goods are on board the vessel, while in CIP, the risk transfers when the goods are delivered to the carrier.
An example of CIF would be a seller in China shipping goods to a buyer in the United States. The seller would be responsible for arranging and paying for the insurance and freight costs until the goods reach the U.S. port.
An example of CIP would be a seller in Germany shipping goods to a buyer in France. The seller would be responsible for arranging and paying for the insurance, but not the freight costs, until the goods are delivered to the agreed-upon location in France.

Accepted Answer

CIF - COST AND INSURANCE PAY seller

CIP - Cost and i insurance will pay buyer

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